Rockwell Collins Inc. and its former parent, Rockwell International Corp., plan to cut jobs and may reduce profit forecasts as the economy worsens and demand for aircraft and factory parts falls. Collins, a maker of cockpit displays and other avionics equipment, said it will cut about 2,600 jobs, or 15% of its work force, because of an airline industry slump. It said fiscal 2001 earnings should meet estimates of $1.40 to $1.45 a share because of demand for defense products.

Rockwell Collins Inc. and its former parent, Rockwell International Corp., plan to cut jobs and may reduce profit forecasts as the economy worsens and demand for aircraft and factory parts falls. Collins, a maker of cockpit displays and other avionics equipment, said it will cut about 2,600 jobs, or 15% of its work force, because of an airline industry slump. It said fiscal 2001 earnings should meet estimates of $1.40 to $1.45 a share because of demand for defense products.

Westinghouse Air Brake Co. said Tuesday it has agreed to buy Rockwell International Corp.'s railroad electronics division for $80 million, improving its train brake and communications product lines. Westinghouse Air Brake, one of North America's largest makers of locomotive equipment, bought the unit from Rockwell Collins Inc. in Cedar Rapids, Iowa. Rockwell Collins is a subsidiary of Costa Mesa-based Rockwell.

* American International Group Inc. said that Chairman Maurice "Hank" Greenberg received a subpoena from New York Atty. Gen. Eliot Spitzer regarding policies that may help companies smooth earnings. * Kroger Co. will restate and cut profit for three years after new regulatory guidelines were issued on accounting for store leases. Kroger will reduce earnings by less than 1 cent a share for 2001, 2002 and 2003, the Cincinnati-based company said. * National Medical Health Card Systems Inc.

In a move expected to boost U.S. aviation industry sales to China's fast-growing market, the Federal Aviation Administration opened an office in Shanghai on Friday to aid Chinese manufacturers' efforts to get certification for their aircraft. The office initially will support efforts by China's General Administration of Civil Aviation to meet safety standards and gain approval for its planned ARJ-21 passenger jet, said John Hickey, director of the FAA's Aircraft Certification Service.

LAS VEGAS -- Two of the major challenges the government faces in attempting to allow thousands of small drones into U.S. airspace are knowing where the aircraft are in relation to other aircraft flying nearby and making sure they're safe from hacker attacks. Rockwell Collins Inc. believes it has addressed both concerns with a device that's slightly larger than a postage stamp. The company's unassuming MicroGRAM device promises to provide precise and secure GPS technology for the kind of small drones that police agencies want to use to spot runaway criminals.

Boeing Co. announced Monday that it would propose a redesigned version of the 767 jetliner as its entry in the bidding for a $40-billion contract to supply the Air Force with new aerial refueling tankers. The aerospace giant said it had tweaked the design of its 767 long-range freighter to improve fuel-efficiency and allow it to take off and land on shorter runways. Chicago-based Boeing is competing against Century City-based Northrop Grumman Corp.

Wrangling over the U.S. debt ceiling and questions over corporate earnings mean markets are unlikely to get a break any time soon. Wall Street is set to end its worst three months in a year as July draws to a close this week after a roller coaster ride for markets. The Standard & Poor's 500 index rallied 6% in the run-up to reporting season, but earnings misses from big industrial names such as Rockwell Collins Inc. and Caterpillar Inc. weighed on the Dow and S&P 500 on Friday.

Interpublic Group of Cos. shares tumbled 24% Monday after the world's largest advertising firm delayed the release of its second-quarter financial results, raising investor concern about accounting issues. The shares slid $4.69 to $14.99, a five-year low, on the New York Stock Exchange. The company pushed back the report--originally due out today--to Aug.